Prime Credit Finance - Captive
The auto finance industry has been through a firestorm over the past 12 months and remains a very fluid environment. As a result of many of the changes, the Prime Leasing category was eliminated from the awards this year as many companies exited the market after sustaining substantial losses during 2008. With the significant reduction of lease-end values, leasing has become less attractive for retail customers.
Dealers have felt the significant credit tightening at all ends of the market. Additionally, many dealers have experienced a substantial loss of available retail financing sources – especially independent dealers, some of whom have found no place else to turn. The volatility in the market has shown through in the dealer rankings, with dealers showing their frustration.
“Dealers have been through unprecedented times with the Auto Finance industry,” stated noted industry expert Greg Goebel. “The good news is that for both franchise and independent dealers some of the bellwether sources are still going strong. The bad news is that many familiar companies have disappeared over the last 12 months and nearly all those remaining have either tightened their credit criteria or advances, or both.
Dealers expressed some dissatisfaction with their captive finance companies, judging by the 29-point year-over-year drop in the category group average. BMW Financial Services snatched this year’s Diamond Award, unseating four-time Diamond winner Toyota Financial Services and earning a place in the awards for the first time.
After being edged out by only one-tenth of a point, Toyota Financial Services won the Platinum Award. Honda Financial Services took home the Gold Award this year.
A rather wide margin divided the top three from the other nominees. However, two other companies scored above the group average, Ford Credit and Nissan Motor Acceptance Corporation, to claim fourth and fifth place respectively.
|BMW Financial Services||Diamond||126.9|
|Toyota Financial Services||Platinum||126.8|
|Honda Finanical Services||Gold||113.7|
|Nissan Motor Acceptance Corp.||97.4|
Vol. 6, Issue 4